The U.S. Senate launched a charged and high-stakes hearing on November 19, 2025, as lawmakers confronted Michael Selig, former crypto attorney and Donald Trump’s nominee for chair of the Commodity Futures Trading Commission (CFTC). Senators from both parties demanded clear answers on how he plans to regulate the fast-moving crypto market, which has triggered volatility, fraud complaints, institutional outflows, and billions in consumer losses over the past year. Selig entered the chamber with confidence, but senators refused to treat crypto as a niche issue. They pushed him to define his regulatory philosophy, his approach to enforcement, and his interpretation of federal authority in the digital-asset economy.
Selig Outlines His Regulatory Vision
Selig positioned himself as a reform-minded regulator who wants to modernize the CFTC to match the speed of innovation. He outlined a vision where the U.S. encourages blockchain development while enforcing strict market integrity rules. Senators immediately challenged him. They argued that crypto companies exploit regulatory gaps, confuse investors with ambiguous product structures, and shift responsibility from one agency to another. Several lawmakers pointed at recent failures across token exchanges, the collapse of several lending platforms, and the rise in offshore derivatives products that U.S. residents still manage to access.
Warren Leads a Fierce Pro-Consumer Attack
Senator Elizabeth Warren opened hostilities with a blunt warning. She insisted that the American public has grown tired of crypto scandals, hidden leverage, and the wild price swings that wipe out savings. She told Selig that the Senate expects a regulator who can confront industry pressure, not one who caves to it. Selig fired back with equal intensity. He promised to investigate illegal activity, shut down firms that refuse to comply with U.S. law, and prosecute fraud with maximum force. He stressed that innovation cannot excuse criminal behavior or market manipulation. He vowed to increase the size of enforcement teams and hire more technologists who can scrutinize blockchain transactions.
Lawmakers Push for Clarity on CFTC–SEC Jurisdiction
Other senators took the hearing in a different direction. They focused on the jurisdictional war between the CFTC and the Securities and Exchange Commission. The U.S. still lacks a clear definition of which crypto tokens qualify as commodities and which count as securities. Senator Cynthia Lummis urged Selig to cooperate with the SEC instead of competing with it. She argued that regulatory clarity will help American businesses innovate without fear. Selig promised strong inter-agency cooperation. He acknowledged that turf battles cripple enforcement efforts and allow fraudsters to operate in the shadows. He stated that he wants Congress to define digital-asset classifications, but until that happens, he will work closely with the SEC to create joint guidelines.
Senators Examine Selig’s Industry Ties
Several lawmakers grilled Selig on his previous work as a crypto attorney. They feared that he might lean toward industry leniency. They demanded full transparency about his clients, his advisory role in token launches, and his personal holdings. Selig responded without hesitation. He listed his clients, explained the nature of his consulting work, and emphasized that he divested all personal crypto holdings before accepting the nomination. He promised to recuse himself from any matter that involves a previous client.
Consumer Protection Takes Center Stage
The hearing then turned toward consumer protection. Senator Sherrod Brown pressed Selig on the alarming rise in crypto derivatives that expose retail traders to extreme leverage. Brown argued that several platforms encourage inexperienced users to gamble with 20x or 50x leverage without proper disclosures. Selig agreed that the CFTC must crack down on these products. He committed to stricter leverage caps, mandatory risk warnings, and higher penalties for platforms that target retail investors with predatory structures. He also announced plans to create a dedicated consumer-protection division inside the CFTC.
Senators Address Systemic Risks
Senators did not limit their scrutiny to retail issues. They questioned the impact of crypto on systemic stability. Senator Mark Warner highlighted the increasing presence of crypto derivatives in institutional portfolios. He demanded clear safeguards that prevent contagion from flowing into the banking system. Selig acknowledged the risk. He explained that the CFTC will require greater transparency in institutional derivatives positions. He promised to create real-time monitoring systems that allow regulators to spot large exposures before they threaten market stability. He also pledged to collaborate with global regulators, since crypto markets operate across borders around the clock.
Republicans Defend Innovation and Question Critics
Several Republican senators defended Selig against accusations of industry favoritism. They argued that the U.S. needs a regulator who understands the technology. Senator Ted Cruz challenged critics by insisting that innovation drives economic growth and the country must not push crypto companies overseas. He encouraged Selig to craft rules that attract talent and capital to the United States. Selig reaffirmed this point. He stated that the CFTC must balance responsible oversight with an environment that supports entrepreneurs. He highlighted the risk of losing blockchain leadership to Europe, Singapore, or the UAE, which continue to develop clear regulatory frameworks.
Illicit Finance Sparks the Most Heated Exchanges
The hearing grew especially heated when senators questioned Selig about the surge in illicit financing through crypto mixers and cross-chain bridges. Senator Angus King demanded immediate action. Selig responded by outlining an aggressive strategy that targets both on-chain and off-chain entities. He promised more partnerships with the Treasury Department, expanded blockchain-forensics capabilities, and faster coordination with international investigators. He stated that he will hold exchanges accountable for weak compliance controls, and he will not tolerate platforms that assist laundering operations or provide loopholes for sanctioned actors.
Selig Tries to Reassure the Senate and the Public
Throughout the hearing, senators repeatedly circled back to the broader political climate. The crypto market remains volatile after the Great Bitcoin Crash of 2025, and consumers feel anxious. Fraud cases continue to dominate headlines, and institutions have begun reducing crypto exposure. Senators wanted assurances that Selig can restore trust. Selig told them he can deliver results through firm enforcement, modern rules, and open communication. He insisted that American leadership in digital finance requires strong oversight and transparent regulatory expectations.
A Crucial Decision Now Awaits the Senate
The hearing concluded without a final vote, but senators left the room with a clear sense of the stakes. If confirmed, Selig will shape the future of U.S. crypto governance at a moment of crisis. The industry wants clarity, investors want protection, and lawmakers want stability. Selig promises to deliver all three through decisive action and modern regulatory strategy. Senators will decide in the coming weeks whether they trust him to lead the CFTC during the most turbulent era in crypto’s history.
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